BOE Guides to More of the Same

U.K. Unemployment Falling Faster Than Expected

The end of the U.K.'s experiment with interest-rate guidance should be in sight. Unemployment has fallen to 7.1%, just above the 7% threshold set by the Bank of England as a waypoint for reassessing monetary policy. But the BOE doesn't appear ready to give up on guidance yet.

Unemployment has fallen far faster than expected. In August, when the BOE introduced its rate guidance, unemployment was 7.8% and was forecast to reach 7% only...